The Treasury needs to concentrate on the recovery. Its wish to raise taxes and cut spending is damaging confidence and helping slow down what was a strong recovery.
There is now an urgent need to rescue the recovery. This needs a complete change of attitude and approach, and a new forecasting model to stop the crazily pessimistic forecasts of the OBR.
The Treasury should:
1. Set out a new framework for policy based on the current 2% inflation target and debt interest as a percentage of revenue target, dropping the EU state debt targets. The government should add a growth target.
2. Cancel the National Insurance tax hike. We need more jobs not a further tax on jobs.
3. Cut Stamp duty on homes again to add stimulus to a slowing homes market.
4. Stop the further attack on self employment through IR 35
5. Buy more UK goods and services into the public sector instead of so many imports by tweaking procurement rules
6. Commission substantial extra electricity capacity to cut out imports and allow extra power for the electric revolution
7. Speed haulage drivers tests and training
8. Use farming subsidies and rules to promote more food growing – too much is being directed to wilding
9 Do more to make it easy for people to work for themselves, to set up and expand small businesses.
10 State sector to make contract opportunities available to smaller companies.
